MORTGAGE MODIFICATIONS TEND TO FAIL - 02/04/09 08:34 AM
Here is an interesting article from the Washington Post that describes the difficultiy many homeowners have with modified mortgages.  See http://www.washingtonpost.com/wp-dyn/content/article/2009/02/02/AR2009020203163_pf.html
Some interesting statistics show that the avergage modification increases the principal balance.  This is probably because some delinquency is added to the principal.
We just had a modification that changed the interest rate but not the payment amount.  OK, it became interest only instead of negative amortization, but what good is it to someone that got a pay cut and can't afford the payments?  At best it was a stop gap measure and the borrower knows it.
The lender approach … (12 comments)

LENDER SHORT SALE ACCEPTANCE LETTER EXAMPLES - READ WITH CAUTION! - 02/04/09 07:53 AM
What is a short sale?  When giving lectures I like to use the definition as follows:
The sale of a real estate property for a price that is less than the total amount necessary to fully satisfy the actual present encumbrance (mortgage) indebtedness on the real estate property.
Often I see a different description, one that says, The sale of real estate when the lender accepts less than its mortgage amount and forgives borrower from paying the deficiency.
Which is correct?  A look at the short sale acceptance letters lender's provide is going to tell us the real truth about short … (23 comments)

 
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Richard Zaretsky, Florida Real Estate Attorney

West Palm Beach, FL

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Richard P. Zaretsky P.A. - Board Certified Real Estate Atty

Address: 1655 Palm Beach Lakes Blvd, Suite 900, West Palm Beach, Fl, 33401

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Legal true life experiences, general observations and commentaries for Realtors, Lawyers and Mortgage Brokers - also see our Palm Beach County Short Sales group blog.
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